Question 1

Oil shocks tend to cause the price level to ______, and the real GDP to ______.

Accepted Answer

A)  increase, increase 
B)  increase, decrease 
C)  decrease, decrease 
D)  decrease, increase 
E)  none of the above 
A)  increase, increase 
B)  increase, decrease 
C)  decrease, decrease 
D)  decrease, increase 
E)  none of the above

Question 2

Expansionary fiscal policy in the face of an oil shock will stabilize _____, but at the cost of ____.

Accepted Answer

A)  price level, high unemployment 
B)  price level, lower real GDP 
C)  employment levels, lower price levels 
D)  real GDP, higher price levels 
E)  both c and d 
A)  price level, high unemployment 
B)  price level, lower real GDP 
C)  employment levels, lower price levels 
D)  real GDP, higher price levels 
E)  both c and d

Question 3

Show and describe the effects of an exchange rate shock.

Accepted Answer

An exchange rate shock refers to a sudde

Question 4

An exchange rate shock coupled with austerity would tend to:

Accepted Answer

A)  lower real GDP. 
B)  raise real GDP. 
C)  increase SRAS. 
D)  lower LRAS. 
E)  none of the above 
A)  lower real GDP. 
B)  raise real GDP. 
C)  increase SRAS. 
D)  lower LRAS. 
E)  none of the above

Question 5

A commodity boom can lead to inflation in the absence of:

Accepted Answer

A)  a tighter fiscal policy. 
B)  a tighter monetary policy. 
C)  a looser fiscal policy. 
D)  a and b 
E)  b and c 
A)  a tighter fiscal policy. 
B)  a tighter monetary policy. 
C)  a looser fiscal policy. 
D)  a and b 
E)  b and c

Oil shocks tend to cause the price level to , and the real GDP to .

Expansionary fiscal policy in the face of an oil shock will stabilize _, but at the cost of .

Show and describe the effects of an exchange rate shock.

An exchange rate shock coupled with austerity would tend to:

A commodity boom can lead to inflation in the absence of:

Latin American Economic History

Economic Growth and Latin America

Limits to Growth in Latin America

Growth and the Environment in Latin America

Latin American and Primary Commodities

Import Substitution in Latin America

Latin American Trade Policy

Exchange-Rate Policy

Financing Current-Account Deficits

Macroeconomic Policy in Latin America

Poverty Inequality

Economic Policy Debates in Latin America

Filters

Exam 11: Macroeconomic Stability

Oil shocks tend to cause the price level to ______, and the real GDP to ______.

Expansionary fiscal policy in the face of an oil shock will stabilize _____, but at the cost of ____.

Show and describe the effects of an exchange rate shock.

An exchange rate shock coupled with austerity would tend to:

A commodity boom can lead to inflation in the absence of:

Latin American Economic History

Economic Growth and Latin America

Limits to Growth in Latin America

Growth and the Environment in Latin America

Latin American and Primary Commodities

Import Substitution in Latin America

Latin American Trade Policy

Exchange-Rate Policy

Financing Current-Account Deficits

Macroeconomic Policy in Latin America

Poverty Inequality

Economic Policy Debates in Latin America

Filters

Oil shocks tend to cause the price level to , and the real GDP to .

Expansionary fiscal policy in the face of an oil shock will stabilize _, but at the cost of .